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The media industry in China is gradually open up to foreign investment and participation in varies sector like in print, Television, radio, film, Internet, publishing and many other areas.

According to the information provided by the SAIC contained in the 2003-2004 China Media Yearbook and Directory which is a publication of the China Advertising Association, the total advertising turnover in China for the year 2003 reached RMB108 billion. This is an increase of more than 19% over the total advertising turnover in 2002 and it will break RMB 200 billions by 2008. On he other hand, the proportion of advertising in the overall GDP remains very low in China. It is only 0.6-0.7% compared to 1.5% in the U.S. For example, the New York Times¡¦ one-year revenue is equal to all the advertising income of all China¡¦s newspapers combined.

Most income of Chinese media firms come from advertising. The second largest source are from program production. Broadcast media represents a substantial advertising income. China's TV industry has experienced rapid growth since early 1980's.

China has a population of 1.4 billion and as of 2003 had 37 national level TV stations, 363 city level TV stations and 1,424 county level TV stations, which stations reached approximately 95% of the population. In China, there is only one TV station and only one cable network company in each city or county and these TV stations and cable network companies must be owned by local government administration, as such, the ability to establish relationships with these government owned TV stations provides certain protections against outside competition as the number of available channels are limited. The State Administration for Radio, Film and Television (¡§SARFT¡¨), China's national regulatory authority for the broadcasting industry, has mandated the migration of the cable broadcasting system from analog to digital signal by 2015. According to the Statistics Information of the SARFT, by the end of 2005 there were more than 4 million digital cable television subscribers in China.

The population in Guangdong province is over 83 million. There are about 99 city and county level TV stations in Guangdong province, which cover approximately 96% of the population, with approximately 10 million cable TV subscribers. According to the Statistics Information of the SARFT, by the end of 2005 there were more than 750,000 digital cable television subscribers in Guangdong Province.

Income from TV commercials is the major source of revenue for TV stations in China and in 2005 advertising income reached $4.9 billion, which represented more than half of the stations total income, an increase of approximately 15% from 2004. TV commercials are sold to international and domestic advertisers. International clients are charged predominantly in line with international standards on a Cost Per Rating Point (CPRP) basis, especially in case of members of the American Association of Advertising Agencies, which determine spot pricing according to viewership reports provided by AC Nielsen or CCTV¡¦s Central Viewer Survey and Consulting Center. Domestic customers are normally charged at a fixed fee per time slot.

As outside industry capital can not invest in the media industry in the past, 82% of Chinese media firms are capital hungry. The huge growth of media industry lead to tremendous investment opportunities under covered. With our very strong business relationship and the know-who in China media industry, we believe the company can grow very fast both organically and in-organically.

Currently, the company is actively working with several companies in China in order to achieve strategic partnership or co-operation in areas like TV Channel operation, advertising sales and TV Program production.